Best Car Insurance Companies of 2025

How to Find the Best Car Insurance for You

While these insurers get top marks for customer satisfaction, the right auto insurance provider for you will depend on several factors, such as where you live, your driving history and your vehicle.

With that in mind, here are some steps you can take to ensure you get the best coverage.

1. Determine Which Coverage Types You Need

You'll typically need to have a minimum amount of liability coverage to meet state requirements, and in some cases, you also need uninsured motorist coverage and personal injury protection.

If you financed your car, your lender may also require both collision and comprehensive coverage. Beyond that, you may consider optional coverages depending on your budget.

2. Set a Budget

Evaluate your budget to get an idea of how much you can afford to pay each month. As you evaluate your options, this can help you determine how much coverage you can afford.

As you shop around, you can adjust coverage types, amounts and deductibles to find the best balance between your budget and your peace of mind.

3. Shop Around

Take some time to get online quotes from at least three to five insurance companies to evaluate your options. As you go through the process, make sure you select the coverages and coverage levels that fit your budget so you can make an accurate comparison. Consider using a car insurance comparison service that compares rates on your behalf to help you find the best deal.

Other factors to consider as you shop around include available discounts, financial strength ratings, claims satisfaction and other features that are important to you. It can also help to pick an insurer that offers other types of coverage, potentially helping you qualify for bundling discounts.

Learn more: How to Choose the Best Car Insurance Company

How Does Car Insurance Work?

Car insurance provides financial protection for certain losses that are beyond your control. Both the form and extent of the protection you receive ultimately depend on the types of coverage you choose for your policy.

Types of Car Insurance

There are several different types of car insurance coverage you can include in your auto insurance policy. Here's a quick summary of the standard options:

• Liability insurance: Provides protection in the event that you cause an accident resulting in another party sustaining personal injuries or property damage. It's required in nearly all states, though some offer waiver options.
• Collision insurance: Covers the cost of repairing or replacing your vehicle if you collide with another vehicle or a stationary object, such as a pole. Collision coverage usually accompanies comprehensive insurance, both of which may be required by a lender if a vehicle is financed.
• Comprehensive insurance: Provides coverage for the cost of repairing or replacing your vehicle damaged in a non-collision event. Examples include theft, vandalism, glass and windshield damage, weather and other acts of nature, accidents with animals and fire damage.
• Uninsured motorist coverage: Offers protection in the event that you're hit by a driver who has no auto insurance coverage. It typically also includes underinsured motorist coverage, which kicks in if the other driver doesn't have sufficient coverage to pay for your injuries and vehicle damage. It's required in certain states.
• Medical payments coverage: Also called MedPay, this coverage helps pay for medical and funeral expenses, regardless of who's at fault for the collision.
• Personal injury protection (PIP): Helps pay for medical and funeral expenses, as well as lost wages and eligible household services, regardless of who's at fault. PIP is required in certain states.

Depending on your insurance company, you may also have your pick of other optional coverages, such as rental car reimbursement, gap insurance, roadside assistance, glass and windshield coverage (waived comprehensive deductibles), accident forgiveness and many others.

How Much Does Car Insurance Cost?

The average car insurance premium nationwide in August 2025 is $2,328 annually or $194 per month, according to Experian data. However, what you pay will vary depending on several factors, including the following:

• Age
• Gender
• Marital status
• Location
• Driving record
• Vehicle make and model
• Vehicle usage
• Claims and insurance history
• Coverage types and amounts
• Deductibles

What's more, auto insurance companies in most states may also consider your credit-based insurance score to help calculate your rate. This isn't the same as the credit score lenders use, but it is based on the information in your credit report—so it's important to build and maintain good credit to help save on rates.

Learn more: Factors That Affect Your Car Insurance Costs

Frequently Asked Questions

Save Time Comparing Auto Insurance With Experian

While shopping around for car insurance is one of the best ways to save money, the process can be time-consuming if you request quotes from each insurer individually.

To save time, consider comparing car insurance quotes with Experian, which can provide quotes from more than 30 top insurers. You can also get notifications when rates drop in your area and learn more about the factors that are influencing your rates.